2 unstoppable growth stocks to buy if there is a sell-off in the stock market

Earlier this year, the S&P 500 confirmed something investors had been eagerly waiting for: the emergence of a bull market. However, the index did not stop there and continued to reach new records. And today, that benchmark is headed for a 20% gain for the year.

In the current environment, you may not be thinking about the next market selloff — but this is actually a good time to think about what you should do when the next market weakness occurs. We know it will because even when markets are at their strongest, indices don’t rise in a straight line. There are always times when stocks will pull back, pause, and ideally rise again.

What is the best move an investor can make? Plan ahead by considering which quality growth stocks would make excellent long-term buys in the downturn. These players should have a solid winning track record, a clear competitive edge to keep them in leadership positions, and bright prospects. Let’s check out two unstoppable players that should be on your shopping list if (when) there’s a market sale.

Image source: Getty Images.

1. Meta platforms

Meta platforms (META 1.39%) has built a leading position in social networks through Facebook, Messenger, Instagram and WhatsApp. These apps have become part of our daily lives — in fact, over 3.2 billion people worldwide use at least one of them every day.

And Meta’s moat, or competitive advantage, is simple. Users of these platforms know that if they leave for another app, they will lose many of their contacts. This, as well as the strong reputation of Meta Apps, keeps users loyal – both of which are key to growing the company’s revenue. Advertisers, who account for the lion’s share of Meta’s revenue, know that consumers will spend a lot of time on those apps.

This resulted in billions of dollars in revenue and net profit for Meta. In its most recent quarter, the company reported a 22% increase in revenue to $39 billion. And net income was over $13 billion. The company has been so successful that earlier this year it launched its first dividend, saying it is in the financial position to reward shareholders and fund growth.

Now, what’s next for Meta? They can become a winner in the hot growth area of ​​artificial intelligence (AI). The company is investing heavily and aims to create AI for every Meta user — to help you with everything from leisure to professional activities.

Meta shares are up 68% so far this year, but shares remain cheap at 27 times forward earnings estimates. And a dip purchase can get you an even better deal.

2. Palantir Technologies

Palantir Technologies (PLTR 6.58%) it’s been around for 20 years — but it’s only recently been thrust into the investor spotlight. Historically, this software company was known for its contracts with governments, but in the last two years, that has changed. Palantir’s government contract revenue is still growing, but commercial growth has far outpaced it.

That potential for commercial contract growth, as well as Palantir’s use of artificial intelligence, is fueling the company’s growth, which has helped the stock rise 130% so far this year.

So what does Palantir do? They help their clients aggregate their data and put it to better use — often resulting in game-changing decisions or a whole new way to approach a challenge. Aggregating data across an organization is a complex task, one that’s difficult for a company to do on its own — and that’s what’s kept Palantir’s business growing.

Last year, the company launched a new product, its Artificial Intelligence Platform (AIP), which really supercharged growth. To introduce potential customers to this platform, Palantir invites them to “Bootcamps” which are sessions that help them go from scratch to use cases in a matter of hours.

All of this is reflected in Palantir’s financial results. In the most recent quarter, for example, U.S. commercial revenue grew 55% to $159 million, while the number of U.S. commercial customers grew 83% to nearly 300 customers. It’s important to note that Palantir only had 14 commercial customers in the US just four years ago. Meanwhile, as mentioned, government revenue also continues to grow — up 23% in the quarter.

Palantir shares have rallied this year, hitting 112 times forward earnings estimates, so any pullback could create an exciting opportunity for investors to get into this unstoppable growth stock.